0

0

0

0

0

0

0

0

0

This article is more than 1 month old.

Income tax return filing: Key things to know before using form ITR-2

Mini

Income Tax Return (ITR) filing is the process by which a taxpayer can report total income earned in a financial year. He/she can claim the refund of the excess tax paid/deducted during the financial year by filing it for that year.

Income tax return filing: Key things to know before using form ITR-2
Income Tax Return (ITR) filing is the process by which a taxpayer can report total income earned in a financial year. The taxpayer can claim the refund of the excess tax paid/deducted during the financial year by filing it for that year.
The Income Tax Department has notified seven forms for filing Income Tax Return (ITR) for financial year FY20-21 or assessment year FY21-22. These forms include Sahaj (ITR-1), Form ITR-2, Form ITR-3, Form Sugam (ITR-4), Form ITR-5, Form ITR-6, and Form ITR-7.
Among these, ITR-2 is available for individuals and HUFs (Hindu Undivided Families), whether resident or non-resident, in respect of the following incomes:
1. Salary or pension.
2. Income or loss from one or more house properties.
3. Income or loss under the head ‘Capital Gains’
4. Income under the head ‘Other sources’ (including income chargeable at special rates).
Who is not eligible to file ITR-2 for AY 2021-22?
ITR-2 cannot be filed by any individual or HUF, whose total income for the year includes income from profit and gains from business or profession, and also who has income in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by a taxpayer from a partnership firm.
What are the changes in ITR-2 as compared to previous years?
In ITR-2 of AY 2021-22, taxpayers can choose to opt for the new tax regime under section 115BAC.
What documents are required to file ITR-2?
Taxpayers having salary income need Form 16 issued by their employer.
If they have earned interest on fixed deposits or saving bank account and TDS has been deducted on the same, they need TDS certificates i.e., Form 16A issued by deductors.
They will need Form 26AS to verify TDS on salary as well as TDS other than salary. Form 26AS could be downloaded from the e-filing portal.
Taxpayers living in rented premises need rent-paid receipts for calculation of HRA (in case they have not submitted the same to their employer).
If they have any capital gains transactions in shares, they will need a summary or profit/loss statement of capital gain transactions of shares or securities during a year, if any, for computation of capital gain.
They will need bank passbooks, fixed deposit receipts (FDRs) to calculate the amount of interest income.
In case taxpayers want to claim any loss incurred during the current year, then they will need the relevant documents exhibiting the loss. In case they wish to claim the previous year’s loss, they will need a copy of ITR-V pertaining to the previous year, disclosing the said loss.
Taxpayers will also need documents or proofs for claiming tax-saving deductions u/s 80C, 80D, 80G, 80GG such as life and health insurance receipts, donation receipts, rent receipts, receipts for tuition fees, etc., if the same were not considered in Form 16.
next story